Kenya's inflation rose to 7.3% in October 2026, up from 6.8% in September. Transport costs were up 17.1% on a year earlier and food 10.2%. From 15 October, diesel in Nairobi reached KES 227.76 a litre. If your prices have not moved since January, your margin probably has.
Find the costs that moved
Most businesses do not need to raise every price. Start with the costs most exposed to fuel and food:
- Deliveries, transport and staff travel
- Food and drink ingredients
- Packaging and imported stock
- Generator fuel and cooking gas
Compare what you paid for each in October with what you paid in January.
Work out a fair increase
A simple example. A product sells for KES 1,000 and costs KES 800 to make or buy, leaving a 20% margin. Of that cost, KES 320 is fuel and food. That part has gone up 10%.
| Before | After costs rise | After repricing | |
|---|---|---|---|
| Price | KES 1,000 | KES 1,000 | KES 1,040 |
| Cost | KES 800 | KES 832 | KES 832 |
| Margin | 20% | 16.8% | 20% |
A 4% rise restores the margin, which is far less than the 10% headline and much easier for customers to accept.
Protect yourself on quotes and contracts
- Give quotes a validity period, such as 14 days, while fuel prices are moving.
- Add a fuel or cost adjustment clause to longer contracts.
- Tell regular customers before a change, not on the invoice.
- Ask suppliers for fixed prices on your largest monthly orders.
Five steps for this month
- List your ten biggest cost lines and their price in January and October.
- Mark the ones linked to fuel, food or imports.
- Recalculate the margin on your five best sellers.
- Set new prices that restore the margin, not more.
- Check EPRA's next fuel review on 14 November before you finalise.
Running trucks? Our trip costing guide shows how fuel feeds into cost per kilometre.
Want to know what your costs really did this year?
We cost your products and services, show which lines moved and model price changes before you commit to them.
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